“Getting your tax refund is a great opportunity to make some smart moves on your yearly finances by knocking out some of your bills in advance.“
As we’ve reached adulthood, the reality of bills and financial responsibility has most of us convinced that growing up was indeed a trap. Paying bills is probably in the top 3 of everyone’s least favorite things to do. Yet there’s something undeniably rewarding about managing our own finances properly and overall having our sh•t together. Getting your tax refund is a great opportunity to make some smart moves with your yearly finances by knocking out some of your bills strategically
Here are 5 ways you can adult with your income-tax return this year to get some additional value out of your refund.
1.) Pay your credit card – put it all on one of your cards, particularly the one with the highest interest rate. This may not appear to have meaningful impact short term, but in the long term, you can be saving yourself hundreds of dollars depending on your interest rate. Think about that for a second, avoiding long-term interests can save you hundreds and possibly thousands of dollars that you’re basically throwing away in the trash.
2.) Car insurance – Many people feel that paying their car insurance is one of the least exciting things you can do. Though we personally find insurance to be an absolute delight, we understand if you don’t. Consider paying your car insurance premium on an annual basis and avoid the monthly routine. Paying your annual or semi-annual premium upfront saves you from the dreaded reminder that you have yet another bill to pay, while also saving you anywhere from 5% to 20% on insurance per year!
3.) Gym Membership: Managing our physical health is becoming a greater priority across the nation with gym memberships increasing consistently year-over-year since 2012. If you’re between the ages of 18-34, chances are you have some sort of health/wellness subscription to pay for. Though paying the lump sum of an annual subscription may not look too appealing up front, it will most often yield a worthwhile discount when comparing month-to-month vs annual costs. Ask your gym if they offer any semi-annual or annual plan offers and get this bill out of the way in one discounted payment.
4.) Open a savings account: The struggle most people have with following a savings plan is simply getting started. People tend to feel what they have available to save is not enough to make an impact or get discouraged by the slowly increasing number on their savings account. A great way to give your savings a kickstart is by depositing your tax refund into a savings account or other financial asset. If you’re not sure what makes the most sense for you, consider consulting with a reputable financial advisor. Try the folks over at Cerda Munoz Advisors if you don’t know where to get started.
5.) Digital Subscriptions: In a recent survey by RBC conducted on 1000 Americans, 55% had a Netflix subscription. YouTube followed with 46% and Amazon with 31%. That’s pretty major! These are only a few of the myriads of online subscriptions people pay for, most of which will offer annual discounts. Pay your annual subscription up front on these services you know you can’t live without and forget about a monthly bill for the whole year.
Hopefully, you’ll be able to take 1-2 of these into consideration with your incoming tax refund. Thinking about paying your car insurance up front this year? Get in touch with us and save between 10-20% when you pay your annual or semi-annual premium up front. Give us a call at (714) 736-9048 and one of our friendly experts will be ready to assist you.